The pause has allowed people to pay down other debts, save money, and improve credit scores. It has also brought an opportunity to take pause and question the broken economics of the US higher education system. The federal government is expected to lose nearly $200 billion on student debt rather than profit from it, while large firms have raked in profits.
The moratorium also affected some student loan refinancers and other companies that had built businesses on college debt. In January, SoFi CEO Anthony Noto said that the refinancer’s student-loan-related business had “declined meaningfully” since loan payments were paused. SoFi is doing just a quarter of the student loan refinancing business
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